Digital Transformation in Consumer Products - Global ......Jul 26, 2016 · Digital Transformation...

Thomas M. EllenbergGlobal Director, Industry Business Unit Consumer Products - SAP SE

SAP Forum Hong KongJuly 26, 2016

Digital Transformation in Consumer Products -Global Trends and Best Practices from Digital Leaders

THE PROPOSITION IN CONSUMER PRODUCTS

Reach, Engage & Serve Consumers to

Drive Profitable Growth

in the Digital Economy

We have entered the ageof the digital consumer

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5

Today’s strategic imperativeThe consumer engagement journey

ü Develop consumer intimacy to

understand preferences, needs

and desires

ü Anticipate and respond to consumers

in the moment to deliver engaging,

compelling and consistent experiences

ü Execute cost-effectively across LOBs

to enable profitable growth from consumer

intimacy and responsiveness

Consumerintimacy

WhatWhereWhen

How

EfficientExecutionSimplicityScaleFlexibility

Sustainable Advantage

High


Global Perspectives on Growth in Consumer Products

Increasing Complexity

Declining Profits

Flat Revenue

Stagnant Growth

Digital strategies:key to unlocking innovation and

growth potential

2X growth projected

Unprecedented opportunity

Trillions in net new profits


Digital Maturity – An Industry Perspective

Digital Transformation – Prevalence is different by industry

Ultimately EVERY industry will be impacted

MILLS & MINING • O&G

CHEMICALS • EC&O

UTILITIES

LIFE SCIENCE / HEALTHCARE

SERVICES / TRANSPORTATION

ZCONSUMER GOODS / FASHION

PUBLIC SECTOR • AUTO • IM&C

A&D • HIGHER EDUCATION

HURRICANESEVERE STORMHIGH WINDS

BANKING / INSURANCE

RETAIL / WHOLESALE

TELCO • MEDIA

HIGH TECH

SPORTS & ENTERTAINMENT

DEFENSE & SECURITY


Key Initiatives in the Consumer Products industry

Tailored andRelevant Products &

Services

Resilient andFlexible

Talent to ServeInnovations drivenby key technologies

Attracting NewConsumers, Entering

New Markets

https://www.youtube.com/watch?v=nZ532wkhHYs


Drivers for Growth in Consumer Products

Coca Cola Freestyle

The Protection Ad


Competing in Today’s Digital Economy Requires Speed & Agility

5 Key TechnologyTrends are shaping the

way the industryworks and interacts

Adoption of new key technologies is happening at 10X scale and 5X speed


New Technologies Are Enabling New Business Capabilities

REAL-TIME COLLABORATION DATA DRIVEN EXPERIENCE• Simplified business processes

• Value chain integration

• Seamless business

• People-to-People

• Machine-to-Machine

• People-to-Machine

• B2B and B2C

• Real world awareness

• Digital boardroom

• 360º business insights

• Predictive

• Mass customization

• Mobile (always on)

• 3D visualization

• Gaming and simulation

• Self learning machine


Digital Business is a Paradigm Shift

RE-IMAGINEBusiness Models• New ways to reach

customers & prospects

• Outcome based business

• Platform business

• Enter new industries &markets

RE-IMAGINEBusiness Processes• Collapse cycle times

• Accelerate innovation cycles

• Intelligent processes

• Lean processes

• B2B collaboration

RE-IMAGINEWork• Consumer grade user experience

• Self services

• Real-time collaboration

• People-Machine Collaboration

• Cognitive world & AI

It is about doing things differently and re-inventing business at your pace


Digital Leaders - Experiences and Outcomes

Digital business models are disruptive.The rules have changed.Under Armour is not just selling shirts and shoes. It is atechnology company connecting 160 million people on adigital health platform

Red Bull is not just a beverage company. It is a contentmedia company spanning web, social, film, print, musicand TV creating brand experiences of joy, excitementand adventure

Hampton Creek Foods is not just a mayonnaise andcookie dough company. It is exploring the foodpotential of over 400,000 plant varieties to reimaginethe future of food production.

Mink is not just a cosmetics company, It isfundamentally transforming consumer perceptions ofbeauty and attractiveness.

RE-IMAGINEBusiness Models• New ways to reach

customers & prospects

• Outcome based business

• Platform business

• Enter new industries &markets

More stories available athttp://go.sap.com/solution/industry/consumer-products.html



RE-IMAGINEBusiness Processes• Collapse cycle times

• Accelerate innovation cycles

• Intelligent processes

• Lean processes

• B2B collaboration

More stories available athttp://go.sap.com/solution/industry/consumer-products.html



RE-IMAGINEWork• Consumer grade user experience

• Self services

• Real-time collaboration

• People-Machine Collaboration

• Fair and sustainable - Agibusiness

BrauUnion/Austria – Maintaining Beer Supply with a Mobile Sales ForceComplete story available at http://www.sap.com/customer-testimonials/consumer/brau-union.html


Common Digital Themes in Consumer Products

Global/ Regional StrategicPartnerships


The Answer to Address Today’s Market Realities - SAP’s DigitalBusiness Framework

Smarter and engagedworkforce across

all employees

Supplier collaboration toaccelerate growth

Harness Assets & Internetof Things to drive real-timeinsights and new business

model

Outcome-basedcustomer experience

Re-platform core businessprocesses, and bring

together business processand analytics in real time

Customerexperienceomnichannel

Workforceengagement

Assets &Internet of Things

Suppliercollaboration

business networks

DIGITAL CORE AND INDUSTRY-SOLUTIONS ACROSS25 INDUSTRIES and 12 LINES OF BUSINESS


Key questions to assess your digital readiness in ConsumerProducts

Innovation Manufacturing and Supply Networks

1 Can you monitor individual customer and consumerengagements to understand evolving needs and preferences inreal-time?

7 Can you update and optimize demand plans throughautomated integration with supply network and consumer demandforecasts?

2 Do you engage stakeholders in real-time conversationsduring innovation cycles to build brand advocacy even beforeyou release new products?

8 Do you automate and optimize short- and medium-termforecasting via real-time integration for supply and demandcollaboration across functions?

3 Do you have the speed and agility required to deploy newdigitally-enabled business models to fuel future growth? 9 Are you able to optimize and consolidate orders and

shipments across distribution centers, stores and direct-to-consumer fulfillment throughout your fulfillment network?

Procurement Sales & Marketing

4 Can you monitor your entire supply network in real-time tosense and assess potential supply disruption risk before it occurs? 10 Are your information and offers configurable and personal,

tailored to individual consumers’ needs and preferences?

5 Do you have real-time information access and cross-networktransparency to enable just in time availability while streamliningand eliminating inventory and safety stock?

11 Can you deliver information and offers aligned to consumerpreferences, and presented at the moment of need?

6 Can you enable network agility to monitor, maintain, adjust andon-board suppliers globally quickly and easily based on localneeds or supply disruption risk?

12 Do you enable customer and consumer engagement andservice fulfilment anywhere via seamless and fluid channelexperiences?


Enablement Opportunities to Compete in a Digital Economy

Continuous Value Creation Cycle Proven Approach and Methodology


Why SAP – Why Now

GLOBALPRESENCE AND

RELEVANCE

DIGITALECONOMY

- READYINNOVATION

LEADER

• 40+ yearsConsumerProducts industryexpertise

• 86% of consumerproductscompanies in theForbes 2000 useSAP

• All of the Top 10food, beverage,home and personalcare, and durablescompanies useSAP

CPCOMPANIESENABLED BY

SAP

• 80 million businesscloud users

• 1.9 millionconnectedbusinesses

• $800 billion+ inB2B commerce

• 99%+ of mobiledevices connectedwith SAPmessaging

• 75K employeesrepresenting 120nationalities

• 295K customers

• SAP operates in191 countries

• ConsumerIndustries -Strategic PartnerEcosyshtem

• 98% of top valuedbrands are ourcustomers

• Solutions for 25industries and 12LoBs

• 98% of top valuedbrands are ourcustomers

• 74% of the world’stransactionsmanaged on SAP

• 2011 SAP HANAlaunched

• 2012 SAP Cloudlaunched

• 2014 SAP businessnetworks are thelargest marketplace inthe world

• 2015 SAP HANA CloudPlatform

• 2015 SAP S/4HANA:Most modern ERPsystem

INDUSTRY ANDLOB FOCUS

Thank you Contact information:

Thomas M. Ellenberg,Global DirectorIndustry Business UnitConsumer Products - SAP SE

[email protected]

Digital Transformation in Consumer Products - Global ......Jul 26, 2016 · Digital Transformation...

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